Agenda Index City of Vancouver

ADMINISTRATIVE REPORT

TO:

Standing Committee on Planning and Environment

FROM:

Director of City Plans

SUBJECT:

Approval of Council Initiative - Proposed Strathcona Area BIA

 

CONSIDERATION

OR

GENERAL MANAGER'S COMMENTS

COUNCIL POLICY

Section 456 of the Vancouver Charter gives Council the authority to create a Business Improvement Area (BIA). Council may grant money to a BIA for planning and implementation of business promotion schemes provided that the money is recovered through a special property tax.

Council policy with respect to the establishment of a BIA was approved on October 14, 1997 as follows:

A BIA may be established by Council Initiative; property owners and commercial tenants receive notification of the Initiative, and the BIA will not proceed if one-third or more of the owners representing one-third of the assessed property value, or one-third of the tenants, counted separately, are in opposition.

PURPOSE

The Strathcona Area Merchants Society (SAMS) has completed the first step in the process of establishing a new Business Improvement Area (BIA). The purpose of this report is to commence the second step, which is to approve SAMS as sponsor of, and to commence a Council Initiative for, the proposed Strathcona Area BIA, and to forward the BIA application to the Court of Revision.

BACKGROUND

The Strathcona Area Merchants Society was formed in November 1998, to address conditions on East Hastings and the surrounding commercial/light industrial areas in Strathcona. SAMS was incorporated as a non-profit society on February 1, 1999. The group's short term objectives are to address issues of crime, illegal drug transactions, and street prostitution, toward a long term goal of commercial revitalisation. SAMS has recently taken public positions regarding a number of housing and social service facilities proposed for the Downtown Eastside and Strathcona area.

In December 1998, SAMS approached the City with the intention of sponsoring a BIA application. The group sees a BIA as instrumental in helping the group achieve its revitalisation objectives.

DISCUSSION

The proposed Strathcona Area BIA is bounded roughly by Gore Avenue on the west, Clarke Drive on the east, the CPR right-of-way to the north, and the lane south of East Hastings. East of Raymur Avenue, the southern boundary is Venables Street. The proposed BIA includes the Downtown Eastside Oppenheimer District east of Gore, the M-1 district on Hastings east of Heatley, the M-2 districts north of Railway Street/Hastings Street, and the I-2 District around Kiwassa. The proposed BIA does NOT include the Strathcona or Kiwassa residential neighbourhoods, because they are almost entirely residential, and residential properties are not assessed BIA levies. A map of the proposed boundary is attached as Appendix A.

SAMS proposes a Year 1 budget of $250,000.00 representing an annual levy rate of $1.02 per $1,000.00 of assessed property value. The proposed budget includes a line item (`levy equalization') in the amount of $25,000.00, the intent of which is to partially reimburse major property owners whose levies would be significantly higher than the average levy amount within the proposed BIA. This item would be subject to general membership approval of their budget, in March 2000. Although the SAMS directors cannot guarantee to the major owners that the membership would approve a reimbursement, they believe its inclusion would help convince those owners to support the BIA. A copy of the proposed budget is attached for information as Appendix B.

Boundary Issues

The proposed BIA boundary would create one of the larger BIAs in the City, and would cover a very diverse area. The BIA would include two distinct retail districts (East Hastings and Powell Street), the mixed-use Downtown Eastside Oppenheimer District, and several commercial/light industrial areas including Hastings Street east of Heatley. Staff have some concern that it may be difficult for the BIA to represent the different needs of such a diverse area, a factor which could influence the level of support if the application moves forward. However, SAMS maintains that the larger BIA proposal, because it distributes the financial cost among more members, has enhanced support. SAMS also believes that its goals are widely supported despite the apparent diversity of interests.

Outreach Activities

Outreach to Property Owners and Business Tenants

Since Spring of this year, SAMS has been actively working toward the present BIA application, beginning with the first issue of its newsletter, Strathcona Business News. SAMS formally applied to the City for consideration of a BIA on August 25, 1999. At that time, SAMS began conducting outreach activities to commercial tenants and property owners by mailouts, public information meetings, and direct contact. As part of their outreach, SAMS distributed a survey to property owners and tenants, receiving back 42 responses: 35 in favour (29 property owners; 6 business tenants), 4 opposed (4 owners; 0 tenants), and 3 requesting more information. Based on the returned surveys and their general outreach, SAMS believes the BIA proposal is generally supported among owners and businesses. A copy of their application letter and documentation of their general outreach activities is attached as Appendix C (limited distribution; on file in the City Clerk's Office).

Staff Comments - Outreach to Property Owners and Business Tenants

Staff are satisfied that SAMS has notified all property owners and tenants within the proposed BIA boundaries. Staff attended four public information meetings held at the Strathcona Community Centre. A total of 20 people attended the four meetings, but this number includes SAMS directors, some of whom attended more than one meeting. Only 5 people not associated with SAMS came to the meetings. Low attendance could indicate either a low level of awareness of the BIA proposal, or lack of interest in a BIA. However, low attendance at public information meetings is not unique to the SAMS proposal.

SAMS survey of owners and businesses is probably the best indication of support at this time. As the survey was mailed to 367 properties and 356 businesses within the proposed BIA, the response rate is approximately 10% from owners and only 2% from businesses. However, if the survey results (p. 3) are representative of owners and tenants generally, they would indicate fairly low opposition from property owners (12%) and apparently no opposition from businesses.

At the instruction of staff, SAMS notices contained the name and telephone number of the City's BIA Coordinator. To date, the Coordinator has received a telephone call from one property owner, indicating opposition to the proposed BIA on the ground that it would create an additional level of bureaucracy.

Outreach to Downtown Eastside and Strathcona Community Groups

BIA outreach requirements do not generally extend beyond contacting the commercial property owners and business tenants who would directly or indirectly pay a proposed BIA levy. At the request of City staff working with other groups in the Downtown Eastside and Strathcona, SAMS was asked to contact a number of community organizations as an additional part of their outreach activities. SAMS was requested to outline their BIA proposal to each group, and to report back on the outcome. The community groups identified by staff were as follows: Carnegie Centre Association, Common Concerns, DERA, Downtown Eastside Strathcona Coalition, First United Church, Grandma's House, Ray Cam Cooperative Centre, St. James Community Services, Strathcona Residents Association, and Strathcona Community Policing Centre. This list is not intended to be comprehensive, but is intended to highlight the range of issues and perspectives among the various community groups.

As of the date of this Report, SAMS advises that it has met with or contacted eight of the ten identified groups. SAMS reports that the response to their proposals was largely favourable, and that there appeared to be some interest in working with SAMS on areas of mutual concerns. SAMS reports that it has not yet been able to discuss the proposed BIA with the Carnegie Centre Association and Grandma's House. SAMS has worked with Grandma's House and the City to find a mutually acceptable relocation site for the facility, but such a site has not yet been identified. SAMS has had an initial contact with a Board member of the Carnegie Centre Association which it admits was not positive, but is hoping to have a fuller discussion with the current Director. A copy of SAMS' report on its discussions with community groups is attached as Appendix D.

Staff Comments - Outreach to Downtown Eastside and Strathcona Community Groups

Staff have followed SAMS' outreach by calling each of the eight community organizations contacted by SAMS. The intent of the follow-up calls was to gather community perspectives regarding their discussions with SAMS and the BIA proposal generally.

The response from the community groups was mixed, with the majority of contacts expressing some reservations and concerns about the BIA proposal. Several groups indicated that while there were areas of mutual interest on which they could possibly work with SAMS, their main concerns were around areas where there was likely to be conflict.

A representative of the Strathcona Community Policing Centre Advisory Committee was very positive, citing the importance of business community participation in addressing safety and security issues. Common Concerns felt that SAMS could play a positive role in helping to bring small businesses and neighbourhood services for local residents, and providing more `eyes on the street'. Downtown Eastside Residents Association representatives indicated that, as DERA is supportive of community economic development initiatives, it hoped that SAMS could play a positive role in the neighbourhood, provided that the initiatives do not displace local residents.

The potential impact of business initiatives on local residents was a key concern of many of the community contacts. Strathcona residents are concerned that negative impacts will be displaced from East Hastings into their residential neighbourhood. Several other groups expressed concern that, given their past experience with other business associations in the area, approval of a BIA in the Downtown Eastside/Strathcona area could heighten the conflict between business interests and the interests of low income residents. Many of the groups believe that property owners and business associations in Gastown and Chinatown have taken reactive positions with regard to existing and proposed social services, and have questions about positions SAMS has taken on some issues. Contacts expressed the concern that economic change in the area would not be positive for existing residents, and that there would be mounting pressures to push services and affordable housing out of the area. However, while the groups stress that services for local residents should continue to be located in the neighbourhood, many of the groups agree with SAMS that concentration of province-wide services has had a negative impact in the community.

To date, the City has received one item of correspondence, in the form of an e-mail message, from the Strathcona Resident's Association. A copy of the e-mail is attached as Appendix E.

Staff have discussed community concerns with SAMS, and have asked SAMS if it would be willing to participate in the Downtown Eastside Community Revitalization Program, as an indication of its willingness to work constructively with community groups, and to provide a forum for working with the City and other groups to resolve differences that may arise from time to time. SAMS has agreed to participate in the program. However, noting the concerns expressed by several community groups, Council may wish to defer approval of the Initiative, and request that SAMS engage in further consultation with the groups prior to forwarding the proposal to a Court of Revision (Consideration D) .

CONCLUSION

The Strathcona Area Merchants Society is requesting that Council consider approval of the proposed Strathcona BIA, and has asked that their application be forwarded by way of Council Initiative, to a Court of Revision, in order that they may commence operations as a BIA in April 2000. The results of SAMS outreach activities indicate fairly low opposition from property owners and businesses at this stage in the process. Outreach to local community groups indicates that while some groups are generally supportive of the SAMS proposal, many have concerns about the impact a new business organisation might have on existing residents and the services they depend on. To address some of these concerns, SAMS has agreed to participate in a process to work with the City and community groups to resolve potential conflicts as they emerge. However, given the concerns voiced by several community groups, Council may wish to request that SAMS engage in further consultation prior to forwarding the proposal to a Court of Revision.

NOTE FROM CLERK: ELECTRONIC COPIES OF APPENDICES ARE NOT AVAILABLE - ON FILE IN THE OFFICE OF THE CITY CLERK.

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